CURTIN UNIVERSITY MIRI CAMPUS COMMUNICATIONS 100 ASSESSMENT 2 SUBMISSION TO LOCAL NETWORK SEMESTER 2 2011

LECTURER: MINYU WU

TUTORIAL DAY/TIME: MONDAY/8AM

STUDENT: JESSIE S. BENEDICT

STUDENT NUMBER: 15434937/7E0B7973

STUDENT EMAIL: 15434937@student.curtin.edu.au COMPANY: DIAGEO

CONTENTS
INTRODUCTION...................................................................1 RECOMMENDATION I..........................................................2 RECOMMENDATION II.........................................................3 RECOMMENDATION III........................................................4 5 BENEFITS FOR KEY STAKEHOLDERS...................................5 CHALLENGES.......................................................................6 REASONS FOR IT TO WORK..................................................6 REFERENCES........................................................................7

Introduction
Our continued support for the Global Compact is an important part of your commitment to enriching lives, communities and the environment through business.

Although the Global Compact made us an official participant in 2002 (Participants and Stakeholders 2011), we have sustained the ten principles of the Global Compact since 1997. Therefore, we are confident that it makes us eligible to propose recommendations to the Malaysian Local Network. As a well-known multinational spirit producing company, we are aware that not all of the proposals might be suitable for all industries. Consequently, in order to suit the industry, they should adapt to the changes. However, we are certain our recommendations apply to the mainstream members of the Local Network. This report encloses Diageos recommendations to Malaysias Local Network considering two of the ten principles of the Global Compact (UNGC); Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights (The Ten Principles 2011). Principle 9: Encourage the development and diffusion of environmentally friendly technologies (The Ten Principles 2011). and The Universal Declaration of Human Rights (UDHR): Article 3: Everyone has the right to life... (United Nation 2011). Article 25: (1) Everyone has the right to a standard of living adequate for the health and well-being... (United Nation 2011).

Recommendation 1
Conduct adequate research on all products Diageos human rights principle was questioned following the Thalidomide incident in the UK that caused monster births (Janis, Kay and Bradley 2008, 77). We gained the most humbling experience after the Thalidomide incident, realising that overlooking the responsibility of carrying out adequate research on the drug before marketing it has caused us a drastic decline financially (Janis, Kay and Bradley 2008, 80). Apart from that, not only has it scarred our reputation, it has also abused the right to life which is the utmost element of human rights. However, there are other companies that have experienced similar incidents to ours. Major companies from China like Shandong Zibo Lusaier Diary, Liaoning Tieling Wuzhou Food, and Laoting Kaida Refrigeration have had their products pulled from shelves because they contained some kind of toxic element to their products (The Associated Press 2010). With that, we urge other companies from the Local Network to learn from our mistakes improve and adopt adequate researching on all products.

Recommendation 2
Expanding support and respect for Human Rights by supporting the Right to Life We have been actively involved in aiding the community in Africa with safe water access since 2007 (Corporate Citizenship Report 2010). Through joining forces with local communities and NGOs, our humbling experience with charity over the years has allowed us to add to our effectiveness and certify our reliability to make recommendations in regards to the UNGC principle one in compliance to the Malaysian Local Network. We also got recognition from Business in the Community in 2009, attaining a score of 87.4% in its corporate responsibility index and obtaining a Silver band as well (Business in the Community 2011). Here at Diageo, we support and respect the values of Human Rights as stated in Article 3 and 25 of UDHR. In order to positively affect the continued progress of our society, we realise that a holistic mode is mandatory (Building Sustainable Communities 2010). Therefore, in support of Right to Life, we work in affiliation with African Medical Research Foundation (AMREF) to provide safe water for people in Africa and thus far, we have touched the lives of 4 million people in Africa (Rain Water for Africa 2011). By supporting this charity, companies benefit by getting certain exemptions on taxes, plus taxpayers that donate to charities also enjoy tax (Charles Russell 2011). Therefore, we believe human rights are being cherished and protected when businesses and community take advantage of the benefit that is offered when practicing this recommendation.

Recommendation 3
A specialised regulatory body established to monitor emissions by companies within the Local Network

Although we are not the most environmental friendly company, we believe that we practice going green enough to help reduce our impact on the environment. We make certain that all pollution controls are in place in all of our facilities, and any damage we may cause to the environment is limited as much as possible. Hence, we believe that our recommendation can aid businesses that are making their way to the same level of environmental awareness as we are. As stated by David Cutter, President of Diageo American Supply, Everyday we are reminded of the responsibility we have to engage in setting and achieving environmental sustainability goals (PR Newswire 2011). We are setting a new standard for environmentally friendly production, implemented in our rum distillery in Virgin Island (Alan Lodge 2011). CO2 emissions can be cut by 15,000 tonnes yearly by biologically degrading production byproducts which generate gas to fuel the distillery itself (Communications on Progress 2010). Moreover, in Brazil, 18% of the weight in Smirnoff Ice bottles was reduced, saving an estimation of 3,600 tonnes of CO2 emissions over the period of one year. This method has been proved to increase cost saving as well (Other Environmental Sustainability Case Studies 2010). In short, we, Diageo, recommend that all members of our Local Network come to a mutual agreement to a standardised allocation per financial year towards the growth of technologies to reduce if not diminish CO2 emissions and other contaminants.

5 Benefits for Key Stakeholders

1. ACCOMPLISHMENT
The community will have a sense of accomplishment by directly or indirectly helping to better the community they live in.

2. LIFE QUALITY
Communities with the aid of Malaysias local network members will have a better life, quality wise.

3. EMPLOYMENT
The community will be able to enjoy improved livelihood by getting better sustainable jobs.

4. EDUCATION
People in the community will be better educated about their rights and strive for it to be well respected.

5. ENVIRONMENT
Communities will benefit from a healthier and better living environment.

CHALLENGES
We are aware that the Local Network Member may face a few challenges implementing our recommendations. First, companies may have difficulty in supporting the Right to Life because it is an ongoing charity programme that requires constant attention and nurturing. However, by supporting the Right to Life, companies will experience ethical benefits because they are lending a helping hand to communities in need. Moreover, companies are obligated to house honest environments in workplaces and operations if the third recommendation is implemented. Additionally, this is a positive investment for the future even though private companies will preliminarily suffer a higher outflow.

REASONS FOR IT TO WORK

From our social track-record, be it positive or negative, we have realised the significance of protecting human rights and the environment through charity programmes, adequate product research and adopting research policies. By analysing our previous encounters, we are optimistic that our recommendations will aid our Local Network in the fulfilment of the first and ninth principles of the Global Compact.

Yours sincerely,

Jessie S. Benedict
Jessie Suzanne Benedict Diageo Head of Public Relations

REFERENCES

Building Sustainable Communities. 2010. Diageo Corporate Citizenship Report 2010. http://ccreport2010.diageoreports.com/.

Business in the Community: Diageo. 2011. Business in the Community. http://www.bitc.org.uk/.

Communications on Progress. 2010. Diageo Communication on Progress. Accessed August 31, http://www.unglobalcompact.org/system/commitment_letters/2899/original/Diageo_C OP_2010.pdf?1295649813.

Communications on Progress: Other Environmental Sustainability Case Studies. 2010. Communication on Progress. Accessed August 31, http://www.unglobalcompact.org/system/commitment_letters/2899/original/Diageo_C OP_2010.pdf?1295649813

Diageo. 2010. Diageo Corporate Citizenship Report 2010. http://ccreport2010.diageoreports.com/.

Diageo Announces Carbon Reduction and Environmental Initiatives at Two Facilities. 2011. \ PR Newswire. Accessed September 2, http://www.prnewswire.com/newsreleases/diageo-announces-carbon-reduction-and-environmental-initiatives-at-twofacilities-91817394.html.

Janis, Mark, Richard Kay, and Anthony Bradley. 2008. European Human Rights Law: Text and Materials. 3rd Edition. Oxford, New York: Oxford University Press Inc., New York.

Lodge, Alan. 2011. Diageo to Make Bioenergy Investment. Accessed September 3,

http://www.prnewswire.com/news-releases/diageo-announces-carbon-reduction-andenvironmental-initiatives-at-two-facilities-91817394.html.

Participants and Stakeholders: Diageo. 2011. United Nations Global Compact. Accessed September 3, http://www.unglobalcompact.org/participant/2899-Diageo-Plc.

Rain Water for Africa. 2011. Accessed August 31 http://www.diageo.com/Lists/Resources/Attachments/943/SWA%20Press%20Release %2005%2004%2011.pdf.

Russell, Charles. 2011. Advantages: Tax. Accessed September 1, http://nt4992.vs.netbenefit.com/services/charities/faqstatus.asp.

The Associated Press: More Melamine-Tainted Milk Found in China. 2010. http://www.msnbc.msn.com/id/35057694/ns/health-food_safety/t/more-melaminetainted-milk-found-china/.

The Ten Principles. 2011. United Nations. http://www.un.org/en/documents/udhr/index.shtml#atop.

The Universal Declaration of Human Rights. 2011. United Nations http://www.un.org/en/rights/.

Grade Related Descriptor Individual Report (Submission to Local Network) (15%) Grades High Distinction 80 - 100% Depth and Breadth of Coverage All of the question was addressed and appropriately researched in great depth Problem Solving Highly innovative recommendation/ approach based on great depth of analysis, evaluation, interpretation and deep understanding of the subject matter and the situation. Sound recommendation / approach based on analysis, evaluation, interpretation and sound understanding of the subject matter and the situation. Adequate recommendation / approach based on some elementary analysis and evaluation of the situation Limited recommendation / approach based on a basic understanding of the situation Poor/inadequate recommendation/ approach and / or limited understanding of the situation Structure, language and conventions All components conform to high academic / professional standards

Distinction 70 79%

Most of the question was addressed and appropriately researched in great depth

Most components conform to high academic / professional standards

Credit Pass 60 69%

Most of the question was addressed and mostly researched appropriately Basic components of the question were addressed and mostly researched appropriately Superficial and/or inadequate addressing of question

Most components conform to acceptable academic / professional standards Basic structure. Expressed in own words

Pass 50 59 %

Fail < 50%

Poor structure and/or lack of clarity and /or using the words of others

Mark: 64 Comments: You proposed an individual submission to the Local Network regarding improvement of compliance with the principles 1 & 9 of the UN Global Compact, based on business practices of Diageo. You have demonstrated your understanding of the subject area and presented some good analysis. However, your recommendations regarding principle 9 need to be improved. It is not clear what action plans or schemes can be taken by other members. Your recommendation 1 is a little bit too broad.